Flavour success in emerging and mature markets helps Givaudan to 'sustained growth'

By Nathan Gray

- Last updated on GMT

Flavour success helps Givaudan to 'sustained growth'

Related tags United states Americas Latin america

Increased sales in developing markets for its flavour division have helped flavour and fragrance giant Givaudan to sustained growth above the market average for the first nine months of 2013.

The Swiss-based firm revealed a 5.4% increase in sales across its flavours division, with global sales hitting €1.4 billion (CHF 1.7bn) on the back of increased success in developing markets - particularly across all Asia Pacific markets.

Total sales for the all divisions of the company hit €2.7bn (CHF 3.3bn) in the first nine months of this year - a like-for-like increase of 5% over last year, said Givaudan.

"All segments expanded globally with strong performances in Beverage, Dairy, Savoury, Snacks and Sweet Goods," said​ Givaudan in a statement. "Health and Wellness continued to evolve globally with significant double-digit gains in the salt, sweetness and bitterness masking capabilities of the TasteSolutions portfolio."

Business momentum

"Givaudan continues to demonstrate strong business momentum with a full project pipeline and win rates sustained at a high level,"​ said the Swiss firm.
The flavour and fragrance company reiterated its mid-term objective to grow its business organically between 4.5% and 5.5% per annum, "assuming a market growth of 2-3%, and to continue on the path of market share gains."

"Givaudan expects to outgrow the underlying market and to continue to achieve its industry-leading EBITDA margin while improving its annual free cash flow to between 14% and 16% of sales by 2015,"​ it said.

Flavour success

Increased demand from existing customers, coupled with new business in the area, led to 7% sales growth in the Asia Pacific region - with beverages, dairy, savoury and snack units all delivering 'strong growth'. The developing markets of China, Indonesia and India delivered strong growth with increases in beverage, sweet goods, savoury and snacks, said the firm. While the mature market of Japan was marginally above last year with growth seen in beverage and savoury offset by lower non-food segment sales.

Givaudan said noted that the mature markets of Western Europe and North America contributed to 4.9% growth within the EMEA, while the developing markets of Russia and Africa also played a role in driving growth. In Western Europe, increased sales led by the markets of Great Britain, Italy and Spain, also contributed to growth, it added.

"All segments provided good year over year growth with beverage, savoury, snacks and sweet goods delivering the growth."
Sales also increased across the Americas with the Latin America region offering up 7.9% on a like-for-like basis, and North America growth hitting 3.3% over 2012 figures.

Related topics Market Trends Flavours and colours

Related news

Related products

show more

Color creates expectation in plant-based meats

Color creates expectation in plant-based meats

Content provided by Lycored SARL | 13-Sep-2023 | Insight Guide

As the first interaction a consumer has with your product, color begins the sensory journey and creates the foundation for a delicious taste expectation...

Mastering taste challenges in good-for-you products

Mastering taste challenges in good-for-you products

Content provided by Symrise | 11-Sep-2023 | White Paper

When food and beverage manufacturers reduce sugar, salt, or fat and add fibers, minerals or vitamins, good-for-you products can suffer from undesirable...

Related suppliers

Follow us


View more